Writing for Bankrate.com, Lucy Lazarony says selecting a mobile phone and calling plan at random and handing the phone to your child is a great way to waste a whole bunch of money. The biggest problem stems from picking out a calling plan that doesn’t match your teen’s calling patterns.
Let’s face it, teenagers aren’t going to keep the phone in the car just for emergencies. They’ll be calling and text messaging their friends within seconds. And once they blow through the minutes allowed in the inexpensive, just-for-emergencies calling plan you chose, you’ll be stuck paying 45 to 50 cents per minute on a whole bunch of overage calls before the month is through. Without question, a cell phone is like a blank check in the hands of a teenager. It’s very easy for the bills to get out of control which is why it may make sense to consider a prepaid cell phone for your teen.
SavingAdvice.com offers the following helpful information concerning the pros and cons of prepaid mobile phones:
- No contracts or monthly bills: Prepaid cellular phones do not require you to sign any contract nor pay any monthly bills. Some providers allow you to buy minutes in increments much like you would a prepaid phone card. When the amount you paid for is up, the service will no longer work until you buy more airtime. Most prepaid providers work by the “buy your minutes” model mentioned above, while some prepaid cell phone providers have monthly plans, much like a regular cellular service provider. Still others let you buy up to a year’s worth of coverage in advance. You will need to decide which one of these options works best for you.
- No credit checks or deposits: Not everyone who wants a cell phone can get a traditional cellular service plan. Some people go to all the trouble of shopping for the best plan and picking out their phone only to be denied service because of a credit problem. Prepaid cell phones are available without the traditional credit check hurdle.
- No age limit: Prepaid cell phones can be a good option for teenagers. Some prepaid cell phone plans allow parents to pay for the monthly minutes usage or let their kids pay cash to buy their minutes at thousands of convenient locations. You do not have to worry about the teens driving up big bills since the usage will be limited. It will also be a lesson on teaching them how to budget their money.
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